In just a few hours, the value of FTX’s FTT utility token dropped from $22 to $16.
The reason was the confrontation between FTX and Binance, as well as concerns about the financial stability of the FTX exchange.
Recall that on November 6, Binance CEO Changpeng Zhao announced the company’s desire to get rid of FTT. Assets together with BUSD for a total of ~$2.1 billion were the result of the company’s exit from its portfolio investment in FTX.
He emphasized that the decision is not directed against a competitor, as it is important for Binance to maintain the sustainability of an emerging industry. The reason was “recent revelations,” Zhao explained.
Presumably he meant investigation CoinDeskwhich revealed details of the balance sheet of Alameda Research, a company closely associated with FTX.
“Everyone wants more transparency in our industry, right? My tweets were simple. There were questions about a large ($580 million) FTT deposit on Binance, and we have openly stated that we are closing this position,” Zhao responded to the discussion that arose.
Alameda Research CEO Caroline Ellison wrote about readiness Redeem FTT tokens from Binance at a price of $22.
When asked to comment on the proposal, Zhao asked:
“Do they have or will they buy $580 million worth of BNB?”
Do you plan on taking Alameda up on their offer to close the position OTC to avoid further market impact?
— db (@tier10k) November 7, 2022
However, he rejected the suggestion that Binance is offering Alameda to buy BNB and then exchange it for FTT.
“I did not say that. It was a question, not an obligation. I think we will stay on the free market,” he concluded.
